OneSmart International Education Group Limited (NYSE: ONE) (“OneSmart” or the “Company”), the leading premium K-12 education services company in China, today announced that it has reopened more than 90% of its nationwide learning centers, including OneSmart VIP, HappyMath and FasTrack English. OneSmart continues to take appropriate measures to protect the health and safety of all of its employees and students during this time. Students in cities (including Beijing, Urumqi, etc.) affected by the resurgence of COVID-19 will continue to have access to OneSmart Online to facilitate their ongoing education until further notice.
OneSmart VIP, the Company’s core premium K-12 one-on-one tutoring business, is well-known for its effective results for academic performance. In the fiscal year 2019, the net revenues from OneSmart VIP business accounted for 79% of the Company’s total net revenues. Enrollments and cash sales for this premium program recover quickly following the reopening of cities all over China and resumption of school activities. After the National College Entrance Exam in July, commonly known as the Gaokao, OneSmart has seen a strong demand in personalized tutoring services during the summer vacation and the new academic year.
OneSmart VIP cash sales in July increased by 29% year-over-year, nearly in line with the year-over-year growth rate between September 2019 through January 2020, the first five months of fiscal year 2020 and prior to the coronavirus outbreak in China. In July 2020, OneSmart VIP’s renewal rate was 37%, and referral rate was 31%, which were both higher compared with July 2019. These positive results were due to the Company’s continuous efforts to improve the customer experience and personalize learning for each individual student. The Company believes it is on pace to resume its year-over-year growth momentum for its young children education business (including HappyMath and FasTrack English) after the new semester begins in September.
Mr. Steve Zhang, Chairman and Chief Executive Officer of OneSmart, commented, “Over the past few months of the health pandemic, we have taken our integrated educational experience to the next level for students and parents. With the dedication of our OneSmart VIP teachers and advisors, we continue to help students excel academically through OneSmart Online and its fully integrated OMO platform and premium content. Trust and customer loyalty, which are our key priorities when it comes to our premium education services business, combined with our high-quality services and innovative technology, should help us fuel our growth over the long term.”